US Markets
Thursday, October 5th, 2023 2:06 pm EDT
Key Points
- Rivian Automotive’s stock saw a significant decline in early trading following the company’s announcement that it intends to offer $1.5 billion in convertible notes and provided a preliminary estimate of its third-quarter revenue.
- The company’s third-quarter revenue is estimated to be in the range of $1.29 billion to $1.33 billion, which is in line with Wall Street’s expectations of approximately $1.3 billion. Additionally, Rivian reported having $9.1 billion in cash and equivalents as of September 30.
- Rivian plans to issue $1.5 billion worth of senior, unsecured “green” convertible notes due in 2030, with an option for buyers to acquire an additional $225 million worth of notes. Despite the stock drop, the company had previously reported better-than-expected third-quarter deliveries, and it is scheduled to release its third-quarter earnings after the U.S. markets close on November 7.
Rivian Automotive, an electric vehicle (EV) manufacturer, saw a significant drop in its stock price after announcing plans to offer $1.5 billion in convertible notes and providing a preliminary estimate of its third-quarter revenue. The company’s shares fell by 16% in early trading.
In a regulatory filing, Rivian stated that it expects its third-quarter revenue to be in the range of $1.29 billion to $1.33 billion, which is in line with Wall Street estimates of $1.3 billion. The company also reported having cash and equivalents of $9.1 billion as of September 30.
Rivian intends to offer $1.5 billion in senior, unsecured “green” convertible notes due in 2030, with an option for buyers to purchase an additional $225 million worth of notes.
Despite this announcement, Rivian had reported better-than-expected third-quarter deliveries earlier in the week. The company is scheduled to release its third-quarter earnings after the U.S. markets close on November 7.
This news reflects the ongoing developments in the EV industry as companies like Rivian seek to secure funding and expand their production capabilities.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/05/rivian-shares-sink-after-ev-maker-announces-1point5-billion-raise.html
